Philip Shaw, economist at Investec, said: "We recognise the risk that the economy strengthens further over the coming months, such that the MPC assesses that the recovery has reached ‘escape velocity’, which could prompt a tightening towards the end of this year. Nonetheless this is not our central view and our main case scenario remains that the committee will be reluctant to pull the trigger until mid-2015."

Rising house prices have increased concerns about a possible bubble developing, with three former Chancellors – Lord Lawson, Lord Lamont and Alistair Darling – urging the government to scale back its Help to Buy Scheme, the Financial Times reported.

The Bank's statement was published on the same day as figures from Halifax, which showed house prices rose 8.5pc year-on-year in April on strong demand from home buyers.

This is slightly down on an 8.7pc year-on-year rise in March, but Stephen Noakes, mortgages director at Halifax, said he expected prices to rise further as demand for homes continued to outstrip supply.

The BoE has said it will take measures to control credit as a first line of defence against the risk of a housing bubble, rather than raise interest rates.

The European Central Bank also held its key interest rates steady at its monthly policy meeting on Thursday. The central refinancing rate was kept at 0.25pc, the marginal lending rate at 0.75pc and the deposit rate at 0pc.